Chinese money. Chinese money: names. Chinese money: photo

Yuan, following the Chinese economy, is increasingly increasing its importance in the world. Let's see what factors determine the global perspectives of the PRC currency.

Correct currency name

Yuan - so called in the world of Chinese money. The name, however, does not fully correspond to the sound of the national currency in the PRC itself. In the homeland, Chinese banknotes are called "renminbi" (in translation - "people's money"). A yuan is only a noun, meaning money in principle. But the brevity and euphony of this Chinese word was to the taste of the rest, first of all, of the Western world.

In the ISO standards, the official currency designation is CNY. One yuan ("renamby") is equal to one hundred fans (their name is inside the PRC and in the rest of the world it is the same). In turn, "pennies" can be combined in jiao - ten times the equivalent (like "daim" in the US). So, the PRC money is classified as follows: 1 yuan is 10 jiao, which is identical to 10 fans. However, in practice, a "penny" in Chinese stores is difficult to find, since they are withdrawn from circulation. The most common monetary coins in one or five jiao. Also in the "metal" there are individual Yuan.

History of the renminbi

The history of monetary circulation in China totals several thousand years. Hieroglyphs denoting the words "goods", "purchase", "sale", "exchange" and associated with them in meaning, are in the sources reflecting the times of deep antiquity. The first money in our usual understanding appeared in the state in the 5th century BC. E. First in the form of bronze ingots (or in the form of the simplest objects of life - shovels, knives), then Chinese coins appeared .

Money in the period corresponding to the European Middle Ages, along with copper samples, were supplemented with iron and lead format, and paper bills entered circulation. Over time, Chinese money has undergone a "silver" standardization, and in the early twentieth century - the "golden". When the communists came to power, the People's Bank of China was established. All the money that the population had in circulation was subject to confiscation and exchange for RMB appreciation - new Chinese money, the same "people's banknotes." The emission of a new currency has become strictly controlled by the state.

Exchange rate policy

Until 1974, the RMB was trading, as a rule, with a reference to the pound sterling, but then the quotes began to be applied to the US dollar. In 1994, the government of the country initiated the freezing of the renminbi rate against the US bank account in the ratio of 8.27 RMB to 1 "Bucks", which lasted 11 years. This caused discontent among some of China's trade partners, including the United States. The Chinese authorities began to undergo pressure to liberalize the monetary policy, because, according to representatives of other countries, because of the low exchange rate of the yuan, China gained an advantage due to purchasing power. This situation was partially confirmed by figures: the negative balance of the US trade balance with China in 2004 exceeded $ 160 billion, and in 2005 its increase continued. But in the same year, the PRC government abolished the "freeze" of the course. However, as some experts have noted, since that time the yuan was still not allowed to float freely, and its course could be artificially understated.

Yuan and Ruble

The close economic cooperation between Russia and the People's Republic of China every year impresses more and more. Chinese money, their name and features of pronunciation are not new to the Russian Federation. Moscow and Beijing organize joint work on a multitude of global directions, therefore cooperation in the field of currency regulation plays an important role in the trade cooperation between the two countries. Now the ruble and Chinese money claim to hypothetical inclusion in the list of reserve currencies, but so far this does not happen in practice.

In recent years there has been a trend - mutual settlement is not in dollars or pounds, but in national banknotes. In 2010, the ruble was traded on the Shanghai Stock Exchange, and the yuan, in turn, on the MICEX and RTS. National regulators have different principles of influence on trades. The Central Bank of China has a tight limit on the fluctuation of the RMB exchange rate at the exchange within 0.5%. The Bank of Russia, as a rule, influences trading using currency interventions. Among the traders, the yuan evokes growing interest, there are thematic portals where you can quickly transfer Chinese money to the Russians at the current exchange rate.

Perspective of investments in yuan

Many experts believe that the RMB exchange rate against the world currencies is understated, so it makes sense to invest in a Chinese bank account with the expectation that it will rise in price in the foreseeable future. As the practice of currency trading shows, the yuan, if it grows, is not as fast as investors would like. For example, in regard to the ruble, experts believe, the RMB appreciation has recently shown an average annual growth rate of about 8%.

Approximately the same benefits can bring the usual banking contribution. Invest in RMB financiers recommend only in some cases. First, it is expedient with regular trips to China. Secondly, the yuan can be considered as a "reserve" currency for diversifying the portfolio of investments. Thirdly, deposits in yuan on the terms of Russian banks may well interest the Chinese themselves who come for tourism or business to Russia.

Yuan and dollar

The relationship between the yuan and the main world currency depends, obviously, on how the affairs in friendship between the issuing countries of this money will develop. One of the factors - China's main part of financial reserves is stored in dollars. Much depends on whether the Chinese continue to keep foreign exchange reserves within the existing structure or prefer to diversify the portfolio. The head of the Central Bank of the PRC voiced this idea at the official level - that the country's reserves can not consist only of US dollars. In the press, there were reports that China was going to sell about 2 trillion "bucks" out of the existing 3.04 trillion in favor of transferring to other assets not related to the American "green". Some experts believe that the Chinese authorities are only trying to negotiate preferential terms for the yuan and turn Chinese money into a reserve currency on a par with the dollar.

Yuan as a world currency

The intention of the PRC government to make the yuan one of the world's leading currencies, experts believe, can have a fundamental basis. Some financial analysts expect that in the next few years the share of foreign trade settlements of the PRC with other countries in RMB may exceed 30%. The evolution of this figure is impressive: now it is close to 20%, while four years ago it was 3%.

In the first months of 2014, RMB appreciation, according to the estimates of financiers, took the 7th place in the list of the world's most popular currencies, having outstripped in particular the Swiss franc. The investment value of the yuan is growing as China becomes more open to world markets. Recently, in London, a joint project of the banks of England and the People's Republic of China - a settlement center for organizing work with the yuan. Experts expect that Chinese money will become a significant currency at the world level, but it is not at all a fact that they will replace the dollar.

Yuan outside the PRC

The currency of the People's Republic of China is increasingly used in trading stocks, bonds and other financial instruments. This direction will develop more intensively, the sooner the yuan can become a convertible currency. Renminbi is developing in other states of the "Chinese" profile: Hong Kong (where the share of deposits in the PRC currency reached 12%, while in 2008 - only 1%), Taiwan, Singapore. In the last two countries there are offshore trading centers in RMB. Recently, the People's Bank of China and the Central Bank of Germany signed an agreement on settlements in the PRC currency.

Political significance of the renminbi

The PRC is recognized by many experts as the main engine of the world economy. Now China gives, depending on the bases of calculation, 10-15% of the planet's GDP. Expansion of the economic influence of the PRC, and therefore influence on political processes, directly depends on the monetary policy of the government. Financiers believe that the prospects for this direction depend on three factors.

• First, it is internationalization - the use of currency as an instrument of expression of value and the conduct of settlements in international financial transactions.
• Secondly, it is convertibility - the degree of restriction of flows and outflows of capital.
• Thirdly, this is the use of foreign banks as a reserve currency.

The prospects of the yuan as an instrument of political influence depend on how the PRC government combines priorities in these areas.